Monday, 16 April 2012

Exxon CEO: "If you want to live by the precautionary principle, then crawl up in a ball and live in a cave"

"The most important thing for people to understand about shale gas is it's just yet the next big resource opportunity for us," he says. "The world's economy has a voracious appetite for energy, so thank God we can do this."

"If you want to live by the precautionary principle, then crawl up in a ball and live in a cave."

Rex Tillerson, CEO of Exxon Mobil

Exxon Mobil, America´s most profitable company, now produces as much natural gas as oil, and the share of shale gas is set to grow. The Chairman and CEO of Exxon, Rex Tillerson, a shale gas pioneer himself, knows what he is talking about:

Tillerson brushes aside environmental concerns as manageable and overblown. He regards the shale surge as unambiguously good news for the U.S. and the world, the latest triumph for an industry that periodically invents new ways to find and harness fossil fuels from the earth. "The most important thing for people to understand about shale gas is it's just yet the next big resource opportunity for us," he says. "The world's economy has a voracious appetite for energy, so thank God we can do this."--Tillerson believes the discourse about shale has been hijacked and distorted. He says that Exxon is transparent about its practices and points out, for instance, that the company was an early proponent of disclosing the chemicals that it uses in fracking. He argues that shale drillers are being held to an unrealistic safety standard. "What's happened is the tables have been turned around now to where we have to prove it's not going to happen," he says. "Well, that is a very dangerous exchange to get into because where it leads you from a regulatory and policy standpoint is to govern by the precautionary principle. And the precautionary principle will absolutely undermine the economy." He adds, "If you want to live by the precautionary principle, then crawl up in a ball and live in a cave."

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Given Tillerson's long experience with fracking, it's perhaps not surprising that he takes criticism of shale drilling a bit personally. To him, the shale boom is a great example of the fundamental effectiveness of his industry -- the kind of achievement that always seems to be unappreciated. "We go through this every time we go to a new area to develop," he says. "It's just part of how society deals with having their energy needs met. What I find interesting about the U.S. relative to other countries is in most every other country where we operate, people really like us. And they're really glad we're there. And governments really like us. And it's not just Exxon Mobil. They admire our industry because of what we can do. They almost are in awe of what we're able to do. And in this country, you can flip it around 180 degrees. I don't understand why that is, but it just is."

One must only hope that the political decision makers understand the historic importance of the American led shale gas revolution. It is the best - and maybe only - hope for the US to regain its economic leadership role in the world.